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Chart: Startup costs for wholesale marijuana cultivators? How accurate is it?

I saw this information in the recent MJBiz email, which undoubtedly a lot of you all receive. It goes over how much it costs per sq. ft. to start an indoor vs. greenhouse vs. combination vs. outdoor grow operation. It could possibly be a good reference, but some of the comments for the article point toward it not being accurate.

Here are some of the comments about the data:


Figured we could do a little bit of our own poll to see how it coincides with their data. Our results from this survey will be shared on this post and in the upcoming newsletter. All responses are completely anonymous.

Click here to enter your numbers into the community survey on startup costs for wholesale cultivators.

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The infographic doesn’t seem to break down information as much as it should, at least in my opinion.

For example:

  • There’s more than one way to start up an indoor growing operation. You can convert an existing property or build a brand new one, which can greatly influence costs.
  • Greenhouses can also be re-used. A greenhouse designed for tomatoes can be bought and converted for marijuana cultivation without nearly as much expense as building a brand new one.
  • Prices for startups will also vary by location. Location, location, location. Property in Southern California is significantly more pricey than property in Arizona. And in high temperature places like Arizona, greenhouses can often be just as expensive as indoors because of the cooling costs.

@GrowoniX, We provide consultations for specific information such as this. That said, if anyone is interested I’ll be happy to help the community develop a startup cost calculator spreadsheet. I can certainly share how I think about it on this forum.

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Interestingly, when we total every hard cost - material, construction, power, rents, as well as ancillary and non-durable initial expenses, we come in at exactly $75 per square foot on our most recent production environment.

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Interesting article about rising rents in several cities due to the cannabis industry. That could start skewing the startup costs higher:

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And other costs will likely rise as a result too, electricity and water being up there in my mind.